Prudential downgraded Bowater (BOW) to sell from hold.
Analyst John Tumazos says the results from the paper and printing company's specific mix of business appears to be improving at a slower rate than even weak recoveries he forecast for other paper companies. Tumazos thinks it is possible that a $20 portion of the announced $50 per metric tonne August price hike that he expects for the December quarter could reverse partly in the seasonally slower March 2003 quarter.
He widened his $2.09 2002 loss estimate to a $2.22 loss, and cut the $0.67 2003 loss estimate to $1.63. He also cut the $40 target to $28.